The Affordable Care Act authorized CMS to implement two programs focused on realigning hospitals financial incentives to provide high quality care: the Value-Based Purchasing (VBP) program and the Hospital Readmissions Reduction Program. A significant number of rural hospitals have received VBP and/or readmission penalties. The purpose of this project is to assess the initial impacts of the CMS Value-Based Purchasing (VBP) and Readmission Reduction Programs on rural PPS hospitals. This project has two parts: a quantitative analysis of VBP bonus and penalty data and readmission penalty data and a qualitative analysis of rural hospital behavior change in response to these programs.
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